Earths Energy Ltd · ASX:EE1
Earths Energy — Cradle Resources — Investor Presentation (April 2016)
12 slides from Earths Energy's investor presentation, April 2016
Slide 1: Cradle Resources Panda Hill Niobium Project Definitive Feasibility Study
For additional information contact: Grant Davey Thankyou Cradle Panda Definitive Hill Study Feasibility Niobium – Panda Hill Managing Director E: [email protected] T +61 8 9389 2000 Investor Update April 2016 Project
Slide 2: Panda Hill Project Overview
Panda Hill Overview Panda Hill Project Panda Hill Overview Cradle owns 50% of the Panda Hill Project Panda Hill Niobium Deposit Single Open Pit Operation Mining 72Mt at 0.54% Nb over 30 years Producing 1.3Mtpa ramping up to 2.6Mtpa after 4th year of production Mining Licence and Environmental Licenc
Slide 3: Panda Hill Project DFS Results
Panda Hill Overview Panda Hill Project DFS Results Panda Hill will be the worlds next Niobium mine due to robust economics DFS Overview Panda Hill Operations • NPV8 US$542M (post tax) • LOM average EBITDA of US$112Mpa • 4.75 year pay back • Initial capital expenditure of US$196M (expansion US$93m in
Slide 4: Compelling Economics
Panda Hill Overview Compelling Economics Low Capex, strong margin & long life generates compelling economics and returns with significant leverage to positive niobium outlook Project Free Cashflow Running NPV10 (100% basis ungeared) Peak NPV10 150 3,000 1000 ~US$898m 900 Cumulativer Cashflow (US$M)
Slide 5: Panda Hill Project Capital Cost
Panda Hill Overview Panda Hill Project Capital Cost Low capital costs due to favourable metallurgy & existing infrastructure, making Panda Hill extremely capital efficient vs. other undeveloped niobium deposits Capital Costs Summary Capital Intensity vs. Other Undeveloped Deposits Item US$m % (US$/t
Slide 6: Panda Hill Project DFS Parameters
Panda Hill Overview Panda Hill Project DFS Parameters DFS Demonstrates a Highly Economic Project Initial 10 years mining predominantly in the higher grade Angel Zone of exclusively Measured and Indicated Resources Panda Hill Ore Body Key production figures for first 10 years: • Average grade: 0.68%
Slide 7: Robust Operating Costs
Panda Hill Overview Robust Operating Costs Operating costs are predominately mining & processing and provide a robust margin relative to long term niobium price LOM Production Cost Breakdown Mine Site Cash Costs US$/kg Nb US$/kg Nb 25.00 50 Assumed Long term Niobium Price 45 US$42/kg Nb 20.00 $3.03/
Slide 8: Processing Development
Panda Hill Overview Processing Development Design based on successful existing operational Niobium processing Process Plant Design and Flowsheet facilities • Based on extensive testwork undertaken at SGS Canada, including 3 • The flotation process is similar to Niobec piloting campaigns • The concen
Slide 9: Geology
Panda Hill Overview Geology Significant Resource Upside • Total Carbonatite Mineral Resource of 178Mt at 0.50% Niobium Carbonatite Boundary • Only ~40% of the area of the carbonatite has been properly drill-tested • Mineralisation open in all directions • Exploration upside potential for remaining u
Slide 10: Stable Pricing
Niobium Overview Stable Pricing Niobium has a history of stable prices given increasing underlying demand and supply responsibility Niobium Price History (Average annual value of ferroniobium imports, US$/kg) Between 2006 and 2008 there was a significant increase in prices, instigated by CBMM to add
Slide 11: Global Demand for Niobium
Niobium Overview Global Demand for Niobium Demand has steadily increased since 2000 and is forecast to grow at ~3.0% p.a. Global Ferroniobium Demand Forecast (kt FeNb) 160.0 The amount of Nb used per tonne of steel (Niobium Intensity) has been steadily CAGR 140.0 increasing as Nb steel represents th
Slide 12: Where to from here?
Project Development Where to from here? Next Steps Finalise offtake agreements Secure debt financing Value engineering to look at cost reduction opportunities Front end engineering and design on critical items to reduce the construction period Construction permitting processes Procurement of some lo
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